e.l.f. Beauty (0EF) Q1 2027 Earnings Report

The call presents a strongly positive operational and financial picture: robust revenue growth (36% YoY), substantial international expansion (61% international growth), a meaningful contribution from the rhode acquisition (~$160M in Q1 with a $27M single-day DTC launch), and raised full-year guidance for sales and EBITDA. Profitability expanded materially in Q1, though a sizable portion of margin and net income improvement was driven by a one-time $50M tariff refund that management intends to reinvest across pricing and marketing over the rest of the year. Management is investing heavily in marketing, supply chain diversification and brand expansion (including international rollouts and a new haircare category), which increased SG&A and will pressure near-term operating leverage but is intended to drive long-term growth. On balance, the positive drivers (strong top-line beats, raised guidance, brand momentum, cash strength and supply-chain progress) outweigh the transitory headwinds (one-time tariff benefit, unit declines, temporary higher spending and certain market lapping effects).

e.l.f. Beauty raised its fiscal 2027 guidance, now expecting net sales growth of approximately 18%–20% (up from 12%–14%), adjusted EBITDA of $401M–$407M (implying roughly a 21% margin, up ~20 bps year-over-year), adjusted net income of $212M–$215M and adjusted EPS of $3.50–$3.55 (vs. prior $3.27–$3.32), with an adjusted tax rate of ~25%–26% and a fully diluted share count of ~60.5M. Management expects rhode to contribute ~13 percentage points to net sales growth (vs. 9 ppt previously) and to drive organic net sales growth of ~6%–7% for the year (10%–12% organic for the balance of the year); Q2 total net sales are expected in the mid‑30s. They forecast full‑year gross margin up ~200 basis points (excluding the one‑time $50M IEEPA tariff refund benefit gross margin is expected to be ~flat year-over-year), plan marketing & digital at the high end of a 23%–25% range (tracking ahead in the back half), will fully reinvest the $50M tariff refund Q2–Q4 (net 0 EBITDA impact on the year), and maintain a strong balance sheet (cash ~$344M at quarter end and net debt <1.5x adjusted EBITDA).